July 9th, 2019 Mortgage Industry Update

The Bank of Canada announced on May 29th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019.

Additionally this week:– Marcus & Millichap: Spurred by heightened demand, the GTA’s commercial sector seeing some of lowest vacancy rates in North America. Net absorption expected to approach 5M square feet this year, pulling down the vacancy rate to 4.4%. Rent growth rising almost 26% over past 5 years

– Urbanation: Average price per square foot of resale condo in Toronto rose 3.3% to $520 in the first quarter from the same period last year, the weakest gain since 2014. Average price of condo up 3.6% to $579,000 in the same period, the slowest rate of increase since 2015.

– Bank of Canada: Mortgage debt reached a new all-time record high in May 2019. Outstanding debt stood at $1.56 trillion, up 0.68% from the month before. The balance was also 3.64% higher than the same month last year. However still the second slowest May in three decades.

– RBC housing affordability report: Only 20% of Toronto families could afford an average home at current prices. However affordability measure has declined for two straight quarters, meaning housing is becoming more affordable. Toronto ratio fell to 66%, from 75.3% 6 months earlier.

– BILD: Benchmark asking price for available single-family homes was $1,109,501 in May, declining 3% from last year. New condos climbed 2.8% to $779,687. New condo sales in May up 64% from 10-year average, up 76% from 2018.

– Point2 Homes research: Most of senior home owners (over 55) currently residing in markets outside the main Vancouver and Toronto metropolitan areas. Vancouver only has 28% of its population older than 55. In Ontario, GTA’s seniors accounted for only 18% of the population in 2016.

Stay tuned for the next update!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.